Australian Property


Land shortages still holding back affordable supply

By Leith van Onselen Lindsay Partridge, the CEO of Building supplier Brickworks, has today echoed CSR’s warning that shortages of developable land are preventing a bigger construction uplift and helping to reduce housing affordability. From The AFR: “Despite surging demand, Sydney still has the lowest number of lots being released for housing development of all


Loan-to-income sky high in NSW

By Martin North, cross-posted from the Digital Finance Analytics Blog: We have now finished updating the DFA market model, to take account of the latest DFA survey data, and market data. So we can look across specific households, segments and locations. Specifically we have been looking at average loan to income (LTI – income after


Residex: Sydney housing bubble risks bursting

By Leith van Onselen Residex has released its house and unit price results for February, which revealed 0.39% growth in house values over the month, although unit values fell by 0.51%. Over the year, house values rose by 6.02% nationally, with unit values up by 5.95%: As shown above, growth has been patchy, with house


“No economic rationale for” Aussie housing

By Leith van Onselen ABC News published an interesting morsel on how foreigners view the Australian housing market: While the Reserve Bank warns of risks to specific markets, an experienced financial risk analyst recently returned to Australia from the Washington-based Institute of International finance said foreigners are puzzled about the entire Australian housing market. Deloitte


RBA warns on Melbourne apartment glut

By Leith van Onselen Below is another excerpt from today’s Financial Stability Review (FSR), released by the RBA, which warns of a budding apartment glut, particularly in Melbourne: Another risk arising from robust investor activity is that speculative demand could lead to an excessive increase in construction activity and future supply overhang. While dwelling construction


RBA endorses wet lettuce regulation

By Leith van Onselen In the bi-annual Financial Stability Review (FSR), released today by the Reserve Bank of Australia (RBA), the RBA has gone to great pains to explain and endorse APRA’s wet lettuce approach to prudential regulation of mortgage risks: Recent trends in housing and mortgage markets have raised some concerns about the level


FIRB unable to police foreign property buying

By Leith van Onselen Foreign Investment Review Board (FIRB) chairman, Brian Wilson, has appeared before the Australian Securities and Investment Commission’s annual conference and admitted that FIRB’s ability to track foreign real estate transactions is “sorely limited” due to fundamental lack of data. From The AFR: “There are about 11 million residential dwellings in Australia,


The population ponzi and housing are linked

By Leith van Onselen The Age’s Michael Short has produced a curious article today offering some “innovative” solutions to Melbourne’s housing affordability woes, including living in floating apartments and shipping containers: Would you live in a funky floating apartment? It’s happening all over the world, and might help solve Melbourne’s housing crisis… Floating homes are


A nation fixated on property speculation

By Martin North, cross-posted from the Digital Finance Analytics blog: Today we round out the latest survey results, by updating our other segments. The property as investment bug continues to spread. First, those looking to trade up. Property investment has now overtaken the desire for more space as the main driver to transact. We also


Sydney bubble holds nation hostage

By Leith van Onselen The Sydney housing bubble is really something to behold. After rising in value by more than 30% in less than two years, Sydney housing values continue to climb into the stratosphere, with the rate of acceleration increasing since the start of the year: This surge in housing prices has, of course,


Westpac 90s bust insiders warn on bubble

By Leith van Onselen Two of the players that under writ Westpac’s emergency capital raising in the 1990s – Lazard Asset Management fund managers Phil Hofflin and Rob ­Osborn – have joined the chorus warning of Australia’s sky-high housing valuations and household debt, which are at risk of a painful correction. From The Australian: “Property prices,


Rise of the first home buying speculator

By Martin North, cross-posted from Digital Finance Analytics: We continue our series using data from the latest DFA segmented household surveys. First time buyers are more than ever becoming property speculators. Whilst we have already quantified the number of first time buyers and first time investors in the market, today we look at their underlying


Auction clearances locked in orbit

The national auction clearance rate delivered yet another turbo-charged result over the weekend, driven again by strong demand in Sydney and Melbourne. The preliminary national clearance rate was 77.4%, down only slightly from last week’s 78.3%, with clearance rates still running at their strongest level in six years in trend terms: Sydney’s clearance rate fell


RP Data weekly housing market update

Click to view Core Logic-RP Data’s latest weekly housing market update, which provides a useful snapshot of the housing market as at 22 March 2015. This week’s report includes: Latest weekly dwelling value results; Auction results & clearance rates; Latest median house & unit prices; Average time on market & vendor discounts; Mortgage market activity;


Senate deliberately ignores choking of land supply

If you want a concrete example of how Australia’s politicians are delinquent on the issue of housing affordability, look no further than this: On Wednesday afternoon, backbenchers Barry O’Sullivan, Matthew Canavan and John Williams supported a housing affordability motion from Family First senator Bob Day. It was defeated 48 votes to 10 with most Government


The drivers behind Australia’s apartment shift

From the Housing Industry Association (HIA) comes a decent new report examining the drivers behind Australia’s changing housing composition, including the shift to apartment living: ‘Multi-unit’ dwellings are now a far more significant part of the new home building market than at any other point in Australia’s history… Obviously this situation appears as somewhat of